Current Funeral Service IssuesThe National Funeral Directors Association (NFDA) is the worldwide resource and advocate across all facets of funeral service dedicated to high ethical standards and helping members provide meaningful service to families.http://nfda.org/government-relations-/current-funeral-service-issues.html
Tue, 31 Mar 2015 20:49:02 +0000Joomla! 1.5 - Open Source Content Managementen-gb2015 NFDA Advocacy Summit: Issue Briefs and Talking Pointshttp://nfda.org/government-relations-/current-funeral-service-issues/4108-2015-nfda-advocacy-summit-issue-briefs-and-talking-points.html
http://nfda.org/government-relations-/current-funeral-service-issues/4108-2015-nfda-advocacy-summit-issue-briefs-and-talking-points.htmlPosted: February 27, 2015

While NFDA members are in Washington, D.C., for the 2015 Advocacy Summit (March 3-5), they will be urging Congress to pass legislation on a number of issues that will help grieving families plan meaningful funerals for their loved ones. Following are issue briefings and talking points for the key issues on which NFDA members will be advocacting.

"Veteran Burial Benefit Parity Act of 2015," which would increase the value of VA funeral and burial benefits for our nation's veterans.

"The Families of Fallen Servicemembers First Act" (H.R. 250), which would ensure the immediate payment of military death benefits to survivors of fallen service members when federal spending authority lapses.

If you aren't able to travel to the Advocacy Summit, you can support your colleagues and the families you serve by sending an email to your elected representatives. Doing so is quick and easy when you use the NFDA Congress-at-a-Click tool. An email addressing these bills has already been prepared, but it can be easily customized. Take a few moments to let your voice be heard; visit www.nfda.org/congressataclick(login required) today!

Last week the U.S. House of Representatives voted 272 to 142 to adopt H.R. 636, America's Small Business Tax Relief Act of 2015. This legislation includes built-in gains tax relief and a charitable contribution basis adjustment for S corporations.

These provisions were originally sponsored by Reps. Dave Reichert (R-WA) and Ron Kind (D-WI) in bills making permanent the five year built-in gains holding period (H.R. 629) and a basis adjustment to ensure S corporations are able to deduct the full-value of stock they donate to charity (H.R. 630). After being adopted by the Committee on Ways and Means, the reforms were combined with a provision to permanently increase the Section 179 expensing limitation as part of H.R. 636.

These important reforms received strong bipartisan support. All but one Republican voted for the measure and 33 Democrats parted with their leadership and the administration and voted yes.

"Small businesses need more certainty to grow, and this bill will help them plan for the future," said Ways and Means Committee Chairman Rep. Paul Ryan (R-WI). "We still have a long way to go, but I see this as a down payment on a simpler, flatter, fairer tax code. That's what we need to build a healthy economy and create jobs. And so I want to thank my colleagues for supporting this common sense idea."

It is unclear when the Senate may take up these provisions, particularly as Senate Finance Chairman Sen. Orrin Hatch (R-UT) is focused on comprehensive tax reform and the recently announced tax reform working groups.

The Internal Revenue Service (IRS) issued the 2015 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2015, the standard mileage rates for the use of a car, van, pickup or panel truck will be:

57.5 cents per mile for business miles driven, up from 56 cents in 2014

23 cents per mile driven for medical or moving purposes, down half a cent from 2014

14 cents per mile driven in service of charitable organizations

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile, including depreciation, insurance, repairs, tires, maintenance, gas and oil. The rate for medical and moving purposes is based on the variable costs, such as gas and oil. The charitable rate is set by law.

Taxpayers always have the option of claiming deductions based on the actual costs of using a vehicle rather than the standard mileage rates.

A taxpayer may not use the business standard mileage rate for a vehicle after claiming accelerated depreciation, including the Section 179 expense deduction, on that vehicle. Likewise, the standard rate is not available to fleet owners (more than four vehicles used simultaneously). Details on these and other special rules are in Revenue Procedure 2010-51, the instructions to Form 1040 and various online IRS publications including Publication 17, Your Federal Income Tax.

Besides the standard mileage rates, Notice 2014-79, posted today on IRS.gov, also includes the basis reduction amounts for those choosing the business standard mileage rate, as well as the maximum standard automobile cost that may be used in computing an allowance under a fixed and variable rate plan.

Last weekend, the Senate passed a $1.1 trillion budget that funds the federal government, with the exception of the Department of Homeland Security, through September 2015. The Republican-controlled House has already passed the insurance and tax-extender legislation. The bill now goes to President Barack Obama to be signed into law.

The 55 deductions and credits in the bill benefit a wide array of taxpayers. Of particular importance for funeral directors, is that the bill will extend higher expensing limits and phase-out thresholds under section 179 of the tax code for property used for business purposes. A key provision will extend the small business expensing limitation and phase-out amounts in effect from 2010 to 2013 ($500,000 and $2 million) to property placed in service during 2014. These amounts currently are $25,000 and $200,000, respectively. Therefore, businesses, like funeral homes, will be able expense as much as $500,000 in property with the extension; that maximum amount is now $25,000. Additionally, the deduction would phase out when a business's total cost of qualifying assets exceeded $2 million; the phase-out now begins at $200,000. The higher numbers were in effect until their expiration at the end of 2013. The bill also would extend the definition of qualified property to include computer software and rules for how qualified real property is treated.

As part of the 2012 "fiscal cliff" deal, NFDA supported an estate tax provision that prevented the automatic return of a $1 million federal death tax exemption, setting it at $5 million and indexing it for inflation. This benefitted many family businesses, such as funeral homes. The IRS has just announced the exemption will rise to $5.43 million in 2015, providing families with another $90,000 of flexibility to plan. According to a recent analysis, the exemption has risen $430,000 since 2011, an average of $107,500 each year.

NFDA sees an opportunity when the new Congress convenes early next year. Both the House and Senate will have clear majorities in support of full repeal – or further relief – which 80 Senators from both parties endorsed in 2013. Next year could be a good year for family-owned funeral homes.

Additionally, if the one-year tax extender bill passed by the House fails in the Senate due to a threatened veto by the White House, tax reform could be in play in the new Congress. This could mean lower marginal and effective tax rates for both corporations and individuals (subchapter S corporations), as well as making permanent the proposed increase in the Section 179 exclusion from the current $25,000 to $500,000 and 50% bonus depreciation. All very beneficial for NFDA members.